LEADING CITIES INVEST makes a purchase in Warsaw
- The grade A office building "Renaissance" is fully modernized and BREEAM certified
- Target performance of the open-end real estate fund for 2019 remains 3 percent plus
- CashCall: Fund open to new equity
Frankfurt (04 June, 2019) – An acquisition in Warsaw marks the LEADING CITIES INVEST's first investment in Poland. The "Renaissance" building at the Mokotowaska is located in the densely built-up "Śródmieście" district in the South of the Polish capital, home to numerous international companies, important administrative buildings, ministries, embassies and theaters. Originally built in 1902 as a residential building, "Renaissance" has been fully updated to a grade A office building, also bearing a "very good" BREEAM environmental certificate, without sacrificing any of its historic charm. The main tenant is the global media company Viacom Media Networks. The KanAm Grund Group has purchased the building from a fund managed by GLL Real Estate Partners (GLL), a member of Macquarie Group. It has been agreed to keep the sales price confidential. For more than 5 years, the first open-end real estate fund of a new generation, the LEADING CITIES INVEST, has been generating a continous performance of over 3 percent per year for its investors. This target performance will remain in place for 2019. A CashCall is currently running and the fund is open to new equity.
The "Renaissance" building is located at the junction of the important main streets Mokotowska and Marszałkowska at Plac Zbawiciela. Mokotowska in particular, is one of Warsaw's most beautiful streets, one of only a few that survived the war without major damage and therefore retained its old character. The tall, richly embellished residential buildings have been renovated and are now home to expensive boutique shops and restaurants. The area around the "Renaissance" building offers a cornucopia of local shops, fashion outlets, restaurants and nightlife. The exclusive residential streets bordering the district and the embassy district add to the prime urban surroundings within the heart of this exclusive, central district, making it an extremely attractive office location.
The "Renaissance's" timeless facade combines historic and modern elements. The 5,300 square meter building offers 5 levels above ground, including 5 retail units on the ground floor, and a three-level underground car park. The entire office space was refurbished in 2017 and is currently let to VIMN Poland sp. z o.o., part of Viacom Media Networks. The company is a television network and media company, acting both in the USA and Europe, including brands such as MTV, Nickelodeon and Comedy Central. Further tenants of the building include a Raiffeisen Bank Polska S.A. branch, a hair salon and a delicatessen and organic food retailer.
Warsaw, with its 1.7 million inhabitants, is the ninth biggest city in the European Union and one of Central and Eastern Europe's most important economic centers. The metropolitan region of Warsaw alone generates approximately 15 percent of Poland's total gross domestic product (GDP), which has been gaining 4% annually for years. The dynamic economic growth in Warsaw is outstanding. Poland's capital has for years been developing into a popular location for international technology giants such as Facebook, Google and Samsung, as well as renowned consultancies and numerous other large multinationals. Among the benefits of this Polish metropolis, is a highly qualified work force with low staff costs compared to the rest of Europe, high quality of life and a great infrastructure. Warsaw has become one of the ten cities with the highest density of high-rise buildings in Europe and is one of the focal points for investment in Poland. Thanks to the dynamic economic climate, the office real estate market has grown rapidly over the past few years and now comprises around 5.3 million square meters of office space.
With a portfolio of 22 properties, LEADING CITIES INVEST has already invested in 16 locations in Germany, Belgium, France, the United Kingdom, Switzerland and Poland. This real estate portfolio is notable for its successful diversification, ranging from offices, industry/logistics and retail/gastronomy to the hotel business, doctor's surgeries and medical services and leisure facilities, all 100 percent leased.
The LEADING CITIES INVEST takes advantage of the growth potential of future-oriented cities with a high potential for further development and harnesses it for private investors. With the City-score and the Property Selection Model (PSM), KanAm Grund applies two research and portfolio models that were developed in-house, in order to identify promising real estate markets and properties for LEADING CITIES INVEST. The two models work hand in hand and, in all recent transactions, offered important data on quality and expected performance. The newly developed G-Score Model is a further optimization of this approach specifically for Germany.
About the KanAm Grund Group
The KanAm Grund Group has handled a transaction volume of over 32 billion US dollars since it was established in October 2000. The owner-managed company focuses on the individual needs of German and international investors, with the geographical emphasis being in Europe and the United States.
In order to set it up strategically to face the challenges of the future, the company was reorganized into three business divisions under the umbrella of the KanAm Grund Group: KanAm Grund Kapitalverwaltungsgesellschaft (an open-end real estate fund), KanAm Grund Institutional Kapitalverwaltungsgesellschaft (a special real estate fund) and the new KanAm Grund REAM (international investment & asset management advisory). The aim of this strategic repositioning is the continuous development of the KanAm Grund Group from a German real estate fund issuing company into an international real estate enterprise which provides real estate investment and asset management services to German private investors, institutional investors and international investors alike, irrespective of the investment vehicles involved.